1851

When buying a franchise,&nbsp;<a href="https://www.youtube.com/watch?v=MXWUCNdqyII&amp%3Blist=PLYoYh1wSeGsTqBrKtJH101pFoV4qlvpGc&amp%3Bindex=4&utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-when-buying-a-franchise-what-can-i-afford-2723893" target="_blank" rel="nofollow">what can I afford?</a> 1851 Franchise CEO&nbsp;<a href="https://www.linkedin.com/in/powills?utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-when-buying-a-franchise-what-can-i-afford-2723893" target="_blank" rel="nofollow">Nick Powills</a> of&nbsp;<a href="https://www.youtube.com/watch?v=ef4aftFHiVk&utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-when-buying-a-franchise-what-can-i-afford-2723893" target="_blank" rel="nofollow">1851 Growth Club</a> (also referred to as “Growth Club”) answers this question and other and financial franchising advice.For starters, approach franchising with enough financial bandwidth to ensure you are not completely overwhelmed. Deciding the exact budgetary number that entails is a little more nuanced.In one example from Powills, let's say you buy a $100K service business that requires a van instead of a brick and mortar. You need to pay for the franchise fee, which we will guesstimate at $40K. Then, you need another $60K to make the business operational. Most of this can be financed.As a basic rule of thumb, you should aim to see a three-year payback on your investment. So, if you invest $100K, you need to make $33K a year in profit to pay off your investment.&nbsp;You might not be able to afford $100K all at once, but there are other options.&nbsp;“What I can afford is not all cash-based,” explained Powills. “Sometimes grit or hustle can offset the cash.”When Powills started his own business, he did so with roughly $10,000 in his bank account.“But nobody was going to have more hustle than me,” said Powills. “Sometimes the franchisor will recognize that.”The best way to determine what you can afford is to do your research. Decide what you are passionate about and narrow your search down to a few brands. From there, you can find out how much financial bandwidth you need in terms of the franchise fee, royalties and other fees by looking at the Item 19 in each brand’s Franchise Disclosure Document (FDD). Ensure you consider how you will pay your bills and what level of spending you are comfortable with that will still allow you to scale your business.“You will know your own risk tolerance, you will know what is in your bank account and you probably will have done some homework on leveraging your 401(k) or your assets,” said Powills.&nbsp;Still feeling stuck? Reach out to Growth Club to schedule a free consultation for further personalized advice.&nbsp;To learn more, click&nbsp;<a href="https://www.youtube.com/watch?v=MXWUCNdqyII&amp%3Blist=PLYoYh1wSeGsTqBrKtJH101pFoV4qlvpGc&amp%3Bindex=4&utm_source=1851franchise.com&utm_medium=article&utm_campaign=1851-growth-club-when-buying-a-franchise-what-can-i-afford-2723893" target="_blank" rel="nofollow">here</a>.

1851 Growth Club: When Buying a Franchise, What Can I Afford?

1851 Franchise

1851 Growth Club CEO Nick Powills shares his expertise on how to determine what you can comfortably afford when buying a franchise. 

This brand page has been paid for by 1851. Content within this page that is paid will showcase a Sponsored icon. This means the brand has engaged 1851 FRANCHISE to write the content. Content without the Sponsored Icon is aggregated media placements the brand earned. Questions can be sent to editorial@1851franchise.com

1851-growth-club-when-buying-a-franchise-what-can-i-afford

Atomic Wings

BizTimes: Atomic Wings To Open 15 Wisconsin Locations

biztimes-atomic-wings-to-open-15-wisconsin-locations

Griswold

What To Look Out for in Senior Loved Ones During the Holiday Season

what-to-look-out-for-in-senior-loved-ones-during-the-holiday-season

Footprints Floors

Footprints Floors - Steve and April Namio - National Adoption Awareness Month - 1851 Franchise

Footprints Floors Franchisees Steve and April Namio Celebrate the Joy of Adoption

footprints-floors-franchisees-steve-and-april-namio-celebrate-the-joy-of-adoption

BooXkeeping

How i9 Sports’ Partnership with BooXkeeping Has Streamlined Financial Operations for its Franchisees

how-i9-sports-partnership-with-booxkeeping-has-streamlined-financial-operations-for-its-franchisees

Filta Environmental Kitchen Solutions

Why Oklahoma City Is a Great Market To Open a Filta Environmental Kitchen Solutions Franchise

why-oklahoma-city-is-a-great-market-to-open-a-filta-environmental-kitchen-solutions-franchise

Buying a Franchise Masterclass

 Franchise Opportunities

Get Support Buying a Franchise

How to Buy a Franchise White Paper

How to Buy a Franchise

How to Sell Franchises

How to Grow a Franchise

Find a Franchise Supplier

1851 Franchise Opportunities

Franchisor News

Franchisor Power Rankings

FranCamp Mastermind Summit

Franchise Resources

Website Awards

Power Rankings

About 1851

Advertise on 1851

Contact 1851 Editorial

Terms of Use

Login

facebook

instagram

twitter

linkedin

youtube

Global Plastic Pollution Treaty Talks Stall, but Franchises Can Still Act

global-plastic-pollution-treaty-talks-stall-but-franchises-can-still-act

California Restaurant Minimum Wage Hike - 1851 Franchise News Agg

California Restaurants Struggle with $20 Minimum Wage Hike

california-restaurants-struggle-with-20-minimum-wage-hike

McDonald’s Launches New McValue Platform Nationwide in 2025

mcdonalds-launches-new-mcvalue-platform-nationwide-in-2025

Subway CEO John Chidsey Announces Retirement After Five-Year Tenure

subway-ceo-john-chidsey-announces-retirement-after-five-year-tenure

Black Friday Goes Digital: How Restaurant Franchisees Can Adapt

black-friday-goes-digital-how-restaurant-franchisees-can-adapt

McDonald's Veterans Bring BIGGBY® COFFEE to Portage, Indiana, with a Drive-Thru-Only Experience

mcdonalds-veterans-bring-biggby-coffee-to-portage-indiana-with-a-drive-thru-only-experience

Bringing Sweetness to SilverLeaf, Florida, with a Peterbrooke Chocolatier Franchise

bringing-sweetness-to-silverleaf-florida-with-a-peterbrooke-chocolatier-franchise

CPAs and Gameday Men’s Health Franchisees Open BooXkeeping Franchise in Las Vegas

cpas-and-gameday-mens-health-franchisees-open-booxkeeping-franchise-in-las-vegas

Why This Franchisee Moved from Mexico City to San Antonio to Open Right at Home 

why-this-franchisee-moved-from-mexico-city-to-san-antonio-to-open-right-at-home

How to Get Your Kids Involved in Your Franchise Business - 1851 Franchise

How To Get Your Kids Involved in Your Franchise Business

how-to-get-your-kids-involved-in-your-franchise-business

Joe Caradonna - ProShred Arizona - How Franchising Helps You Spend More Time with Your Family

How Franchising Helps You Spend More Time With Your Family 

how-franchising-helps-you-spend-more-time-with-your-family

Jeff Brazier Drives Kiddie Academy’s Growth with Strategic Leadership and Franchisee Support

jeff-brazier-drives-kiddie-academys-growth-with-strategic-leadership-and-franchisee-support

Chick-fil-A Emerges as the Leader in the U.S. Chicken Chain Industry

chick-fil-a-emerges-as-the-leader-in-the-us-chicken-chain-industry

1851 Growth Club: When Buying a Franchise, What Can I Afford?

MORE STORIES LIKE THIS